ASC 606 construction industry impacts

We continue our revenue recognition series on implementation issues from FASB Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The new revenue recognition standard in ASU 2014-09 is primarily codified in FASB Accounting Standards Codification (FASB ASC) 606, with the same title. This is a longform report focusing on how the new revenue recognition standard will impact the engineering and construction (E&C) industry. To do so, we’ll briefly summarize each of the five steps included in FASB ASC 606, highlight aspects of each step that may be more challenging for the E&C industry to implement, and finally provide illustrative examples. Part I of this report covers steps one through three of the FASB ASC 606 model. Part II covers steps four and five of the model, plus other matters.